Yahoo Finance Christian Dior SE's Dividend Analysis
Assessing the Upcoming Dividend and Financial Health of Christian Dior SE
Christian Dior SE (CHDRY) recently announced a dividend of $2.04 per share, payable on an unspecified date, with the ex-dividend date set for 2024-04-23. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Christian Dior SE's dividend performance and assess its sustainability.
Understanding Christian Dior SE's Business Model
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Christian Dior SE is a holding company with full ownership of Christian Dior Couture and a controlling interest in LVMH. Christian Dior Couture sells apparel, leather goods, jewelry, and accessories under various Dior brands. Its majority of sales are through its own retail stores. Through LVMH, the company operates the following business groups: wines and spirits, fashion and leather goods, watches and jewelry, perfumes and cosmetics, and selective retailing. LVMH has dozens of brands throughout its businesses, including Dom Perignon, Hennessy, Louis Vuitton, Fendi, TAG Heuer, and Sephora. The company's revenue is distributed throughout Europe, Asia, and the United States.
Reviewing Christian Dior SE's Dividend History
Christian Dior SE has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Analyzing Christian Dior SE's Dividend Yield and Growth
As of today, Christian Dior SE currently has a 12-month trailing dividend yield of 1.75% and a 12-month forward dividend yield of 1.81%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Christian Dior SE's annual dividend growth rate was 39.50%. Extended to a five-year horizon, this rate decreased to 20.70% per year. And over the past decade, Christian Dior SE's annual dividends per share growth rate stands at an impressive 17.80%.
Based on Christian Dior SE's dividend yield and five-year growth rate, the 5-year yield on cost of Christian Dior SE stock as of today is approximately 4.48%.
Evaluating the Dividend Sustainability of Christian Dior SE
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Christian Dior SE's dividend payout ratio is 0.35.
Christian Dior SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Christian Dior SE's profitability 10 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Forecasting Christian Dior SE's Growth Prospects
To ensure the sustainability of dividends, a company must have robust growth metrics. Christian Dior SE's growth rank of 10 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Christian Dior SE's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Christian Dior SE's revenue has increased by approximately 24.50% per year on average, a rate that outperforms approximately 86.16% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Christian Dior SE's earnings increased by approximately 44.80% per year on average, a rate that outperforms approximately 81.37% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 22.60%, which outperforms approximately 76.02% of global competitors.
Conclusion: Christian Dior SE's Dividend Outlook
Considering Christian Dior SE's consistent dividend payments, strong dividend growth rate, manageable payout ratio, high profitability, and robust growth metrics, the company stands out as a potentially attractive option for value investors seeking dividend income. The upcoming dividend payment, alongside the financial health of Christian Dior SE, suggests that the company is well-positioned to continue rewarding its shareholders. Investors should, however, always perform their due diligence, keeping an eye on market trends and company performance to ensure any investment aligns with their financial goals.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
